The IRS Provides Tax Relief To Hurricane Sandy Victims

Following the hurricane that hit states along the East Coast, the Internal Revenue Service (IRS) has released multiple resources to help victims financially and emotionally cope with the aftermath of the storm.

With the shortage of clear diesel fuel in the affected states, the IRS announced they will not impose a tax penalty when dyed diesel fuel is sold for use or used on the highway. This relief applies beginning Oct. 30, 2012, in New Jersey, New York, and Pennsylvania and will remain in effect through Nov. 20, 2012.

The IRS also alerted taxpayers that qualified disaster relief payments made to individuals can be excluded from their taxable income. These payments include amounts to cover necessary personal, family, living or funeral expenses that were not covered by insurance and expenses to repair or rehabilitate personal residences or repair or replace belongings if they were not covered by insurance.